Question
Toxic Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager, John, just came up with the idea to sell
Toxic Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager, John, just came up with the idea to sell products in a bundle to provide more options for buyers. Johns suggestion is to sell a bundle of balls (one of each of the four types listed, above) for $50. This represents a savings to the consumer of 15% off regular, individual prices for the items.
The company has been operating within its target cost for all of these products, which have a combined total of $35 per bundle. The proposal includes a target sales volume of 10,000 bundles
If toxic inc recognizes that it will need to invest in at least two new pieces of equipment (at a total cost of $120,000) in the coming year to facilitate this bundling process, what will be the new target cost per unit? (Round answer to 2 decimal places)
New target cost per unit???
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